Online Advertising – How it Works

Online advertising rapidly followed the developing Internet. As customers are spending more time online, and hours spent on the Internet are eclipsing other media, the medium becomes increasingly important to any advertiser.

Advertising, whether online or offline has a number of objectives:

  • Building brand awareness and increasing share of voice in the market place
  • Reaching new customers and creating consumer demand
  • Informing consumers of the advertiser’s ability to satisfy that demand and develop brand loyalty
  • Driving direct response and sales

We shall discuss the objectives in more detail:

Building Brand Awareness:

Making people aware of a brand or product is an important long-term goal for any marketer. Once customer knows about the brand, the marketer has taken the first step towards gaining the customer’s trust and patronage.

The ultimate goal here is to do more business and sell more of the product or service.

Creating Consumer Demand

Creating consumer demand is a three step process: inform, persuade and remind. Advertising needs to convince consumers about what they want and why they want it. Online advertising provides a great way to communicate the unique selling points of a product, thereby helping simulate demand and reminding customers about the product and why they want it.

Satisfying Consumer Demand

The marketer has to promote the product and make the consumer aware of it. If brand building has been effective, consumers will know that a particular brand exists. Also it is important for the marketer to show the consumer how their particular brand or product will best meet their need.

Driving direct response and Sales

All forms of digital marketing need to drive traffic and sales in the long-term. However, the immediacy of online advertising also drives traffic and sales in the short and medium terms. What’s more, it is also possible to measure accurately how effective the online advertising campaign has been in this regard.

Online advertising is able to drive instant sales and conversions. Unlike other advertising mediums, the consumer can go from advert to merchant in one easy click. Because of the connected nature of the Internet, online activities are highly trackable and measurable, which makes it possible to target adverts and to accurately track and gauge the efficacy of the advertising. Each display advert can be tracked for success.

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